FTC Settles with MediaAlpha for $45 Million Over Deceptive Health Insurance Lead Practices

On August 7, 2025, the Federal Trade Commission (FTC) reached a $45 million settlement with MediaAlpha, Inc. and its subsidiary QuoteLab, LLC, addressing allegations of deceptive lead generation connected to health insurance products. The FTC complaint details that MediaAlpha misled consumers by collecting sensitive personal information under the pretense of offering health insurance quotes, while in reality auctioning this data to third-party telemarketers who often made illegal robocalls.

The FTC cited violations of Section 5(a) of the FTC Act, the Telemarketing Sales Rule, and the Government and Business Impersonation Rule. MediaAlpha's affiliates allegedly misrepresented government affiliations using websites with government-like domain names and marketing materials, including videos of U.S. Presidents and social media posts falsely implying government endorsement.

MediaAlpha’s deceptive practices included using paid actors and scripted testimonials to promote insurance plans that were not actually sold by the company. The FTC also highlighted extensive violations of telemarketing rules, including millions of unsolicited calls and contacts on the National Do Not Call Registry, often without consumers' explicit consent.

The complaint emphasizes MediaAlpha’s role in facilitating illegal telemarketing practices by third parties who purchased leads, alleging the company either knew or ignored the misuse of consumers' personal data. Despite MediaAlpha’s claims of consumer consent, the FTC found many consumers were unaware their information was being used for unsolicited telemarketing.

This enforcement action underscores the FTC’s dedication to cracking down on deceptive online lead generation and protecting consumers from abusive data practices in the health insurance marketplace. It also reinforces regulatory priorities around truthful advertising, especially regarding government affiliation and endorsements.

The case serves as a critical example for insurance industry stakeholders on compliance with telemarketing and consumer protection regulations, highlighting risks related to data handling, consent protocols, and transparent marketing practices.

Prominent legal experts with backgrounds at the FTC and Consumer Financial Protection Bureau are actively advising clients on these evolving regulatory landscapes, offering guidance on advertising compliance, data privacy, and enforcement risk mitigation strategies.

This action signals continued scrutiny of online marketing methods within insurance and related financial sectors, stressing the importance of robust internal controls and adherence to FTC rules to avoid regulatory penalties and reputational harm.